Mobile giant O2 is to give iPhone users a better deal. Customers signing up for the cheapest £35-a-month tariff will get three times as many minutes (600) and more than twice as many texts (500) as before.

New boss Matthew Key said O2 customers bought twice as many iPhones as any other device over Christmas and are using them more than expected. The new tariffs are designed to counter claims that it's too expensive - as well as keep sales surging along in the post-Christmas lull.

All existing users will be switched to the better deals but new buyers will still have to pay £269 for the handset.